Archive

IPO news – October 2012

According to the Russian press on 1 November 2012, the planned road show for the sale of the state’s 20 per cent interest in Novorossiysk Commercial Sea Port did not happen. This is due to a change of heart at the government, with First Deputy Prime Minister Igor Shuvalov now proposing the sale of the interest to a strategic investor, with a premium on the market price.

Investment banks claim that such a decision could adversely affect port operations and also reduce interest in the privatisation programme scheduled for 2013.

The port is 50.1 per cent controlled by a JV owned by Summa co-owner Ziyavudin Magomedov and Transneft. Shuvalov cited Summa as a potential strategic investor, and also Universal Cargo Logistics Holding, owned by Vladimir Lisin.

On 21 October 2012, a fortnight after Goldman Sachs withdrew as lead bank for the planned London IPO of MegaFon owing to corporate governance concerns, the mobile operator announced  a last-minute decision to shelve the listing for the time being, allegedly owing to the need to update its IPO prospectus in connection with the acquisition of a 50 per cent interest in mobile phone retailer Evroset.

According to other sources, however, MegaFon was forced to delay its planned road show, as the UK Listings Authority still hasn’t given its OK to the London listing.  Goldman Sachs pulled out of the whole deal owing to its concerns about the planned new structure of the mobile operator devised by MegaFon shareholder Alisher Usmanov.

As reported in Kommersant on 16 October 2012, Transportation Investments Holding Limited, owner of a 40.3 per cent interest in Russia’s largest rail freight operator Globaltrans and representing the interests of N-Trans Group) has announced plans for an SPO organised by Deutsche Bank, Morgan Stanley, JPMorgan and Sberbank CIB on the London Stock Exchange for 10 million GDR. As a result of the secondary offering, its interest will be reduced to 34.7 per cent.

The SPO comes as a surprise, only three months after a previous SPO in July 2012. No explanation has been given for the decision to hold another SPO so soon. While some attribute the sale to the need for the owners of Transportation Investments Holding Limited Nikita Mishin, Konstantin Nikolaev and Andrei Filatov to fund individual projects, which seems highly improbable, others claim that the move is due to a shareholder conflict and the desire of one of the shareholders to exit the business – Andrei Filatov.

According to business daily Vedomosti (16 October 2012), Promsvyazbank has decided at the last minute to cancel its planned IPO in Moscow and London. the Bank had planned to sell 20 per cent for its shares, hoping to raise up to USD 415 million.

However, the IPO attracted little interest, with investors suspicious about the actual value of the shares offered by the bank.

Promsvyazbank President Artem Konstandian claims that the bank pulled out owing to the low price range and owing to the sudden appearance of foreign investors interested in private placements.

According to media reports on 12 October 2012, the global depositary receipts of  MD Medical Group started trading 3 per cent above the issue price. The private health care provider expects to raise over USD 300 million from the IPO, based on a market capitalisation of about USD 900 million.

The IPO proceeds will be used partially to finance expansion of its existing clinic and hospital network (nine health care facilities located in Moscow, Saint Petersburg, Perm and Ufa.

Deutsche Bank and JPMorgan were joint book runners on the IPO.

 

As reported by Kommersant on 9 October, the Moscow authorities overcame the resistance of Luzhniki sports complex minority shareholder APC Centre, which is allegedly linked to Luzhniki former general director Vladimir Aleshin and held an additional share issue of the complex.

As a result of the SPO, the Moscow authorities managed to raise its interest to over 80 per cent. They hold 62.81 per cent through Central Fuel Company and 20.12 per cent through OEK Finance.  The interest of APC Centre has been cut to 11.9 per cent.